Chewy (CHWY) ended the recent trading session at $33.23, demonstrating a +0.09% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.
The online pet store's stock has dropped by 10.83% in the past month, falling short of the Retail-Wholesale sector's loss of 10.63% and the S&P 500's loss of 8.15%.
The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on March 26, 2025. It is anticipated that the company will report an EPS of $0.20, marking a 11.11% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.2 billion, up 13.11% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Chewy boasts a Zacks Rank of #3 (Hold).
Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 26.77. For comparison, its industry has an average Forward P/E of 20.74, which means Chewy is trading at a premium to the group.
Meanwhile, CHWY's PEG ratio is currently 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.09.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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